Alpha Bank posts €943M net profit for Q4 2025

In Q4 2025, Alpha Bank reported a Return on Tangible Equity (RoTE) of 13.1%, while Adjusted Earnings per Share reached €0.36. Adjusted Net Profit after Taxes amounted to €225 million, compared to statutory net profit of €237 million, excluding non-recurring items.

Record Disbursements and Robust Credit Demand
The bank achieved a record €4.2 billion in new disbursements in Greece during Q4, up 40% quarter-on-quarter and 4% year-on-year. Net credit expansion for the quarter reached €1.3 billion, despite high repayment levels, reflecting strong demand primarily from corporate clients. For the full year, net credit expansion totaled €3.5 billion, confirming the bank’s role in financing the real economy.

Deposits and Investment Products
Customer funds grew by 11.5% year-on-year, driven by an 8% increase in deposits (4% excluding the impact of AstroBank) and a 21% rise in assets under management (AUMs). Equity and mutual fund portfolios performed particularly well, rising 28% and boosting recurring fee income.

Revenue Resilience Amid Lower Interest Rates
Net Interest Income amounted to €413.3 million, up 3% quarter-on-quarter, mainly due to contributions from AstroBank and higher lending activity, despite margin compression. Year-on-year, net interest income declined slightly by 2%. Net fee and commission income rose 12% quarter-on-quarter to €136.1 million, driven by corporate lending fees, asset management, and portfolio management services, marking a 19% increase for the year.

Controlled Expenses and Portfolio Quality
Recurring operating expenses totaled €233.2 million in Q4 (+10% quarter-on-quarter due to seasonality), with an annual increase limited to 1.5% at €856.3 million. The Non-Performing Exposure (NPE) ratio remained virtually unchanged at 3.6%, while the credit cost was 58 basis points in Q4 and 48 basis points for the full year.

Strong Capital Position and Increased Payout
The fully loaded CET1 ratio stood at 15%, despite a planned dividend distribution of €165 million for the quarter. Total 2025 dividend distribution is projected at €519 million, representing a payout ratio of 55% of annual profits. Tangible Net Asset Value reached €7.6 billion, up 7.4% year-on-year (11.6% excluding dividend impact).

Outlook for 2026
The bank closes 2025 with strong organic profitability, accelerating credit growth, and improved revenue diversification. The increase in dividend yield, along with the maintenance of robust capital ratios, positions Alpha Bank well for 2026, in a challenging yet opportunity-rich environment.

CEO Statement – Vassilis Psaltis
“2025 was a pivotal year for Alpha Bank, marking the successful completion of the three-year strategic plan launched in 2023. Over this period, and particularly in 2025, we exceeded all strategic and financial targets, completing a series of acquisitions that enhance our capabilities, accelerate our strategy, and position the Group for long-term growth.

Total revenues for 2025 amounted to €2.2 billion, while net profits reached €943 million, reflecting the strength and diversification of our business model. Commercial momentum remained strong, with net credit expansion reaching €3.5 billion, primarily from corporate lending, reaffirming Alpha Bank as the preferred bank for the business sector in our core markets of Greece and Cyprus.

Customer deposits increased by €4.1 billion, of which €2.2 billion came from AstroBank, substantially strengthening our balance sheet. Net fee income rose 19% year-on-year, representing 23% of total revenues, highlighting increasing diversification of income sources, driven by strong Transaction Banking activity and accelerated asset management initiatives, including €1.3 billion in net sales and €2 billion inflows in mutual funds.

Strategically, we remain committed to disciplined capital allocation, prioritizing organic growth while progressively increasing distributions to shareholders through regular dividends and share buybacks. The significant capital surplus provides flexibility for value-accretive inorganic initiatives, strengthening our specialized product units in low-capital-intensive activities, including investment banking, asset gathering, and factoring, while consolidating our position in our core markets.

For 2025, thanks to strong capital generation, we intend to increase distributions to shareholders to 55% of net profit after tax, totaling €519 million, split evenly between dividends and share repurchases. This significantly exceeds our initial guidance of €425 million, underscoring our commitment to sustainable and growing shareholder returns.

Even after these higher distributions and the completion of strategic acquisitions in 2025, our capital position remains robust, with a CET1 ratio of 15.0%. Prudent risk management throughout the economic cycle, combined with a favorable macroeconomic environment, led to a credit cost below 50 basis points for the year. Q4 closed with strong net profits of €237 million.

During the same period, we announced a value-accretive transaction to combine insurance operations in Cyprus between Altius and Universal Life. Completion is expected by end-2026, creating the third-largest insurance platform in the country, covering Life, Health, and General Insurance lines. Strategically, this enhances our transition to low-capital-intensive and fee-based activities in a high-growth market. Prospects in our key markets, Greece and Cyprus, remain favorable, supported by strong macroeconomic fundamentals.

Entering 2026, we do so from a position of strength. Consistent execution of our strategic plan, expanded regional presence, and ongoing cooperation with UniCredit provide a solid foundation for the next growth phase. We look forward to hosting our Investor Day in Q2 2026, where we will present the key pillars and objectives shaping Alpha Bank’s next stage.

Three years of disciplined execution have placed us at the forefront of the sector. We continue this momentum into a new chapter, committed to creating lasting value for our shareholders and all stakeholders.”